The Tasmanian Premier has been criticised for not acting sooner to limit power prices rises.

Average household power bills were set to rise by up to 26 per cent, or $500, from July.

Lara Giddings will introduce regulations into Parliament this week to halve the price increase.

Noel Mundy from the Tasmanian Council of Social Service has welcomed the action, but says it is long overdue.

"We do know that the state budget is going to be a fairly tough one," he said.

"We are seeing more and more people come through our services and certainly we imagine that over the next few months the number of people coming will continue to rise as they try to makes ends meet to cover their costs."

The Opposition claims action by the Government to drive down power prices is evidence it has been ripping off Tasmanians.

Liberal Leader Will Hodgman says the Government has long been claiming power prices were beyond its control and could only be set by the Energy Regulator.

"If the Government's now saying it can fiddle with how much Tasmanians pay for electricity, why have they taken so long to act?"

"They've been ripping Tasmanians off now for a couple of years and they should have acted sooner," he said.

The Premier is yet to comment on how the Government will absorb the costs, but says it will form part the response to the review of Tasmania's energy industry by an expert panel.

"Obviously there is a cost to our budget in relation to this and the details of that will be going through with the response to the expert panel's report on Tuesday, but also with the budget itself," she said.